A significant amount of John Treace’s career has been focused on returning failing businesses to profitability by retooling their sales and marketing areas. So time and again, he’s come into a company where the sales organization was the needlepoint for other problems.
“Of course, the sales operation of a company really is the heart and soul of the company,” says Treace, who is the founder and CEO of JR Treace & Associates LLC. “The performance of everyone else in the business is weighed and justified on the performance of the sales team. … It all shows up in sales.”
Smart Business spoke with Treace about his book, “Nuts & Bolts of Sales Management: How to Build a High-Velocity Sales Organization,” in which he explains how business leaders can create a high-powered sales organization, starting with the company culture.
Why is culture the first section of the book?
Every company that I’ve ever been in that was failing or stumbling was failing because of top management up at the CEO level and at the VP levels. They fail because they don’t have a culture of success. To create the culture you have to identify your core values.
Core values should be written. They are like the 10 commandments. They are simple. They are action statements. As an example, one of the core values that we used in our business is ‘Don’t run out of cash no matter what.’ It sounds simple, but every company that I’ve ever gone into in my business career had run out of cash.
How can you effectively communicate core values to your team?
When you are presenting them, you have to make an emotional connection with each core value. As an example, the core value ‘Don’t run out of cash no matter what’ — when you tell that to a group of people, it really doesn’t sink in because they can’t imagine their company ever going bankrupt. However, if you ask a question to the audience and you say, ‘Have you ever known somebody who didn’t get a paycheck?’ — You’ll see hands pop up all through the audience. You talk to those people and say, ‘See, those people were working for a company that didn’t have this as a core value.’ Then they can make the emotional connection.
So you create your core values. You publish them. You create the emotional connection with your employees. And from that, you can write your mission statements.
Can you explain the relationship between morale and execution in managing your sales team?
In every failed company I’ve been to, the morale was just terrible, with sniping from the corporate officers at the sales team. One company I went into, and I interviewed the CEO and the CFO to begin with, I asked them what they thought the problem was, and they answered, ‘Well, we have a terrible sales force.’
I’ve never seen a terrible sales force in my entire life. I’ve seen sales forces of low morale and sales forces that were not effectively deployed, but I’ve never seen a terrible sales force. In that situation, with the CEO passing down word throughout the company that the sales force wasn’t very good, it totally demoralized the sales force.
The sales force wants predictability. They want to be able to answer these three questions of corporate management: Do you care about me? Can I trust you? Are you committed to excellence? I actually learned these in a talk with Lou Holtz, the football coach.
So when the corporate officers do things that don’t allow the sales team to answer yes to one of those questions, then it’s going to hurt the morale.
How to reach: JR Treace & Associates LLC, (904) 314-1442 or www.treaceconsulting.com